“Regulations needed for microfinance in India”

Capital requirement for microfinance in India is high, it is 21 million US dollars and that remains an entry barrier. Moreover, lack of awareness among the general public about insurance and good regulations are issues that need to be addressed on micro insurance, according to Mosleh Ahmed, consultant, World Bank, on Micro Health Insurance and Regulations.

Participating in the valedictory function of International Advanced Reflective Education and Training on micro insurance programme here on Saturday, he said that public-private participation was the ongoing trend here and in the case of insurance sector, risk layering was a concept that functioned at different levels and it needed different players and insurance companies, State, donors and micro-finance institutions etc come into play in times of emergency such as flood or monsoon failure in the case of crops.

Ryan Florijn, senior executive, Achmea Health Mutual Insurance Company, The Netherlands, said that field work organised as part of the programme helped him to understand the nuances of the market in the local context, which was more crucial than just supporting the programmes.

Karlijn Morsink, University of Twente, The Netherlands, and visiting scholar, University of Oxford, shared her knowledge on crop insurance, her specialisation. A.Umarani, Director, Tata Dhan Academy, and S. Balasubramanian, CEO, People Mutuals, shared their experiences. Participants from various States and insurance companies shared their experiences about the training programme. The event was organised by Dhan Foundation, German Development Cooperation, Central Research Institute on Dry land Agriculture, and LIC of India.